How To Dissolve a Small Business
There are a number of different reasons to end and dissolve a small business in New Jersey. Dissolving a partnership, lack of income or even retirement are all reasons to dissolve a small business. Each of these requires a level of knowhow in the necessary steps to take to successfully end and liquidate your small business.
The decision to dissolve a small business is not always an easy one so this can be a very stressful and emotional time for most. Knowing the proper steps to take and arming yourself with useful information before making the final decision to dissolve a small business will make the process seem less intimidating and complicated. There are several things a small business owner should know about how to dissolve a small business.
Each different states rules and regulations differ. Outlined here is a breakdown of general information on how to dissolve a small business.
In the event that the decision is made to dissolve a small business the decision first needs to be approved by anyone who has a shared interest in the business. This means that the owner and any partners, investors or shareholders associated with the business must all be in agreement that dissolving the small business is the proper course of action.
Filing dissolution paperwork varies from state to state. However, the basic rules still apply. Any small business must notify the state of its dissolution in order for the state to notify the small business of any outstanding tax obligations that may be withstanding. The IRS has a Closing a Business Checklist that outlines the required forms for each different state needed to dissolve a small business.
Any creditors the business has must be notified that the business is closing. A course of action also needs to be arranged with each creditor to settle any outstanding claims.
Excess inventory and any remaining assets must be liquidated in order to dissolve a small business. A professional liquidation company like Ideal Trading can assist with the process to make it go as quickly as possible while still yielding the highest possible returns. Once the liquidation process is complete the profit from liquidation must be distributed among any parties that hold an interest in the business.
To learn more about topics like how to dissolve a small business bankruptcy, closeouts, liquidation and estate sales please visit our news page. To learn more about the liquidation services we offer like appraisals and auctioning or to request our services please fill out the form to the left hand side of your screen.